Homebuyers will certainly invest more in real estate in Melbourne since several reports forecast that prices will go down by the year 2020. This will mean that Melbourne, one of the costliest cities in Australia to purchase property, will be more of a buyer’s market as per experts. Homebuyers can expect property prices to go down anywhere up to 15% by 2020 as per the forecast issued by the National Australia Bank. Prices may go down by an additional 7% from present levels next year as per forecasts which should be attractive to investors and end-users alike looking to snap up property in the city at reasonable prices.
The price segment between $650, 000 and $1.015 million was the one where falls in prices were clearly evident till the end of September 2018. The price falls are no longer observed in case of premium real estate in Melbourne and Sydney. They are now falling in mid-range and affordable home segments which makes overall real estate more attractive to buyers. Affordable homes are the highest performing realty segment in Melbourne at the moment. There has been a drop of 2.2% or roughly $14, 000 in the $640, 000 home price bracket in Melbourne in the three months leading to September 2018.
The drop in prices was even more in higher home price segments as per recent reports. The property market in Victoria has already come under considerable pressure due to several aspects including land taxes, stringent standards of lending and surcharges in stamp duties for foreign buyers along with the Residential Tenancies Act.